Philippines: Fixed communication service revenue set for growth
August 7, 2023

The total fixed communication services revenue in the Philippines is expected to increase at a compound annual growth rate (CAGR) of 5.2 per cent from $3.8 billion (€3.4bn) in 2023 to $4.9 billion in 2028, mainly driven by the strong growth in fixed broadband segment, according to GlobalData, the data and analytics company.
GlobalData’s latest Philippines Fixed Communications Forecast (Q2 2023) reveals that the fixed voice revenue growth will remain stagnant and register a mere 0.8 per cent CAGR over the forecast period 2023-2028. This is due to a steady decline in circuit switched subscriptions and drop in fixed voice average revenue per subscriber (ARPS) as a result of growing consumer preference for mobile/internet-based communications and free voice minutes bundled as a part of operators’ fixed bundled plans.
Srikanth Vaidya, Telecom Analyst at GlobalData, commented: “Fixed broadband services revenue, on the other hand, will increase at a healthy CAGR of 6.4 per cent during 2023-2028, driven by the steady growth in broadband subscriptions, especially higher-ARPS yielding fiber broadband subscriptions.”
Fibre lines accounted for a majority of 61 per cent share in the total fixed broadband lines in 2023, which will increase to about 71 per cent by 2028, supported by the government and operator investments on fibre network infrastructure and FTTH service expansions.
Vaidya concluded: “PLDT will lead the fixed voice services segment in terms of subscriptions through 2028. The operator will also top the fixed broadband services market, by subscriptions, supported by its strong position in DSL and FTTH service lines. The operator plans to invest a CAPEX of around PHP80 to 85 billion ($1.5 to 1.6 billion) in 2023 and seeks to upgrade and expand its fiber broadband network and gain from wider coverage of its FTTH services.”